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Price MC Cartel 5120 Price $44.30 Competitive I Price $6 5 5 q The graph above shows the information given below. An individual firm in a cartel has a marginal cost function given by MC:6+4q. The rm agrees to a quota of 5 units as part of the collusion. The competitive price of the good wouid be $44.90. The cartel manages to drive the price up to $120. Calcuiate the producer surplus for the cartel, when it produces the quota. (Do not include a dollar sign in your response. Round to the nearest two decimal places ifnecessary.) Answer: Suppose that a pricesearcher rm had consumers who were all identical to each other. The individual consumer's demand function is given by: qD= 20-1P. The rm decides to try a second degree price discrimination scheme. The first 8 units will have a price of $12.00. After that. any units a consumer purchases will be only $5.00. The rm has a constant marginal cost of $4.00 per unit. Calculate the deadweight loss per consumer from this secondidegree price discrimination scheme. (Do not include a dollar sign in your response. Round to the nearest twp decimals if necessary.)